Phil.Anderson
Advisely Partner
Advisely PartnerCSLR and the cost of Dixon Advisory
This week has seen a big focus on the CSLR, and particularly the cost to the financial advice profession - $18.6m in 2024/25. The underlying story is the issue of the Dixon Advisory business. At last...
alex.burke
Advisely Team
Advisely TeamOn your second point, it's oddly fitting that the first (and biggest) contribution to the CSLR's costs has ended up being a perfect representation of the problem with its design – a problem you and others in the industry were very vocal about back when it was first proposed.
It's now a matter of legal record that there were Dixon ARs who did not act in their clients' best interests, but this didn't happen in a vacuum; as you said, they were recommending products from a related entity, and those products received contributions because of that incentive structure.
But at present, the CSLR can't consider the other end of that arrangement – certainly not in terms of a fairer distribution of industry funding obligations, anyway
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What actions did ASIC take against Dixon Advisory which left the financial advice profession footing the $135 million bill?
It appears that either no analysis was done on the cost of the CSLR – or that steps have been taken to avoid disclosing what was done.
